NEW YORK ( TheStreet) -- The markets are just taking a nap, Jim Cramer told his "Mad Money" viewers Tuesday, and when they awaken from their slumber, they'll be heading higher.

Cramer said the markets have seen several of these rest periods, which typically come after big rallies like the one we saw after the first of the year. After each of them the markets have continued higher, he added.

That's why the markets were able to digest a host of bad news, including downgrades of American Express (AXP) , Biogen Idec (BIIB) , Regeneron (REGN) and United Continental (UAL) , said Cramer, along with estimates cuts for Apple (AAPL) and disappointing results from Lululemon Athletica (LULU) . Despite all of this bad news, a late-day rally still ensued.

Even the threat of another Congressional battle over the debt ceiling, complete with the threat of a default, government shutdown, debt downgrade or all of the above, was not enough to keep the markets down, said Cramer, because in the end, business is simply good enough to sustain the rally.

Cramer said he can't blame the analysts for jumping off the bull and getting cautious with countless estimate cuts and downgrades. After all, that's exactly what they did during all of the previous market naps as well. But as history has proven, those were the times to buy, not sell, because once the markets woke up they continued higher.

Picking Up the Pieces

Breaking up may be easy to do, but what should investors do with the pieces?

Cramer pondered that question with Abbott Laboratories (ABT) , a company that spun off its pharmaceutical division on Jan. 1 as Abbvie (ABBV) , a stock with a 4.7% yield, while the remaining Abbott Labs currently yields 1.7%.

Cramer first recommended Abbott, a company he owns in his charitable trust, Action Alerts PLUS, in November 2011, right after the breakup was announced. Since then, shares have risen by 24% -- raising the question of what investors should now do with the two companies they own.

Cramer said Abbott Labs, the medical products company, has 14 segments, including nutritional products, which is growing at 35% a year. The company has a lot of exposure to emerging markets, including India and China, which could account for as much as 50% of sales over the next three years.

Cramer said while the old Abbott traded at 12 times earnings with a 9% growth rate, the new Abbott is trading as 17 times earnings with growth expected in the low teens. This multiple expansion, along with solid management and conservative guidance makes Abbott Labs a buy, said Cramer.

So what about Abbvie? Cramer said he was not as impressed. Abbvie does have good management and a decent portfolio of drugs, he noted, but the company's main product, Humira, goes off-patent in 2017 -- something that investors will begin to take into consideration soon.